*ABB, Schneider and Legrand - Q3 Preview: Low growth expectations
Sentiment on ABB has improved based on a more optimistic end market view and the launch of a $4bn buyback on 16th September. Meanwhile, Schneider's increased caution on end markets has led the stock to correct sharply,
underperforming ABB by 22% since June. With expectations on Schneider and Legrand already at a low level, we believe that the market is already pricing in a more subdued growth environment. We continue to recommend Schneider and
Legrand, both OW, over ABB (EW) based on valuation and a superior business mix. However, ABB's share price will get some support again from the buyback, which should restart post publication of results.